China Inflation Accelerates in August as CPI, PPI Rise 
German Inflation Accelerates to 2.9% in August 
Iraq Seeks 6 Million Bpd OPEC+ Oil Quota 
Japanese Yen Nears Seven-Month High as Oil Approaches $100 
Fitch Eyes Japan Budget for Fiscal Discipline 
ECB Rate Hike in Focus as Oil Tops $100 
Hormuz Shipping Slows as Iran Threats Lift Oil Risks 
Japan GDP Growth Beats Forecast, Boosting BOJ Rate Hike Bets 
US Bans Canadian Alcohol, Motorcycles as Trade War Escalates 
Gold Prices Steady Ahead of U.S. Inflation Data and Fed Decision 
Brent Oil Tops $100 as Middle East Conflict Threatens Supply 
US Stock Futures Mixed as Fed Rate Hike Bets Rise 
Asian Currencies Steady as Yen Holds Firm, Oil Tops $100 
UK Food Inflation Forecast to Hit 6.4% by Mid-2027 
Asian Stocks Mixed as AI Chip Rally Meets Oil Surge 
China Boosts Gold Reserves by 650,000 Ounces as Prices Rally 
Gold Prices Rebound as Dollar Weakens, Fed Decision Looms 
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The S&P 500 fell on Thursday as investors digested data indicating a weaker labor market alongside mounting geopolitical tensions in the Middle East, all occurring just a day before the anticipated monthly jobs report.
By 4:00 p.m. ET (2000 GMT), the Dow Jones Industrial Average dropped by 184 points, or 0.4%, while the S&P 500 index declined by 0.2%. The NASDAQ Composite also dipped, falling 0.1%.
Middle East Crisis Impacts S&P 500 and Risk Assets
The recent escalation of conflict in the Middle East has dampened market risk sentiment, affecting S&P 500 news and broader market indices. President Joe Biden stated on Thursday that Israel is not expected to carry out retaliatory strikes against Iran immediately, following Iran's attack on Tel Aviv earlier in the week.
Biden also mentioned that the U.S. is currently in discussions with Israel regarding possible targets for strikes in Iran, potentially focusing on the country’s oil infrastructure. A U.S. official, as reported by the Financial Times, indicated that any response from Israel would likely be measured to prevent further escalation.
Oil prices have surged amidst Middle East tensions, lifting energy stocks into positive territory. “Escalation in the Middle East has led markets to price in a greater risk of a fully-fledged conflict in the region, which could potentially involve the U.S.,” ING analysts noted in a recent briefing.
Jobless Claims Shape Outlook Ahead of Payroll Report
Market traders are cautiously awaiting Friday's key nonfarm payroll report, a significant indicator expected to steer the market's direction before the Federal Reserve’s next rate-setting meeting. Recent S&P 500 news highlights that the number of Americans filing initial claims for state unemployment benefits rose more than expected last week but remained near a four-month low.
The seasonally adjusted initial jobless claims climbed to 225,000 in the week ending September 28, increasing from a revised figure of 219,000 the previous week, according to data from the U.S. Labor Department. Economists had forecasted 222,000 claims. The earlier reading for the week ended September 21 was at 218,000, the lowest since mid-May.
In another economic development, services activity slightly underperformed in September.
Corporate Sector Updates: Levi Strauss, Tesla, and Nvidia
In corporate S&P 500 news, Levi Strauss shares slumped over 7% after announcing a review of its Dockers brand for a potential sale and a downward revision of its full-year revenue forecast.
Tesla also saw a decline of 3%, extending its losses from the previous session following disappointing third-quarter deliveries. The U.S. National Highway Traffic Safety Administration stated that Tesla is recalling 27,185 Cybertruck vehicles in the U.S. due to an issue with the rear-view camera reducing visibility.
Conversely, NVIDIA Corporation shares rose over 3%, driven by CEO Jensen Huang's comments to CNBC, revealing "insane" demand for the company's upcoming Blackwell AI chips.
